Renault Should Be Able to Rev Its Engine

The Company's Latest Financial Guidance Might Be Too Cautious

By

Renée Schultes

Feb. 13, 2014 12:05 p.m. ET

Renault's new financial guidance looks as low-frills as many of its cars.

The French auto maker said Thursday it expects to generate more than 5% operating profit margins on €50 billion ($68.37 billion) in sales by 2017. That doesn't look demanding. It made 3% margins last year and were it not for negative foreign exchange effects that would...